An 18 year old doesn’t understand that loans have to be repaid, it’s just “free money”.
I’m not kidding. It’s that scary.
Only if their parent’s didn’t teach them.
My husband and I have taught Dave Ramsey’s Financial Peace University several times as volunteers. Last week, we taught Generation Change, the teenager / college version for the first time. These kids were shocked that loans were considered financial aid, that student loans were not bankruptable and not settled like credit card debt.
Spot on. The universities essentially prey upon unsophisticated young adults. It is borderline criminal, certainly should be completely socially unacceptable. This debt cannot be discharged in a bankruptcy, unlike other debts. Now that only gov’t make student loans, we are turning our young people into indentured servants of the gov’t with those loans.